The Decline Seems Over in Litecoin (LTC) and Polkadot (DOT). Reversal Coming Up?

Litecoin and Polkadot cryptocurrencies have been quite bearish for more than a month, losing more than 50% of their value in the process. The bearish sentiment in the crypto market has been pulling all cryptos lower, apart from a very few, but it seems like the turmoil might have ended. The bearish period might be over now for cryptos and 2022 might start quite bullish, similar to the beginning of 2021. Polkadot and Litecoin remain weak, but they are showing some bullish signs, so let’s see how they look right now.

Litecoin Daily Chart Analysis – LTC Tries to Reverse at Support?

Litecoin turned bullish suddenly early in November, surging to $300 almost, after missing most of the crypto rally in October. But, the bearish reversal in the crypto market was unfortunate for Litecoin, pulling it down. LTC/USD fell to $130 during the crash early this month, but the real support zone comes at around $140, which has been holding during December.

LTC/USD

Sellers have had many attempts at this support, but it has resisted as the crypto market consolidated after the decline and now it seems like the market is trying to turn bullish, with Bitcoin challenging $50,000. Litecoin is one of the oldest cryptocurrencies and it has a reputation as a trustworthy cryptocurrency, since it hasn’t had any outages so far.

So the number of merchants accepting LTC payments is increasing worldwide, being the third most accepted cryptocurrency among merchants according to Cryptwerk. The Litecoin Visa debit card brings LTC further into the mainstream, with active addresses and the activity increasing too. But, it is following the crypto market sentiment, so if the market continues the bullish reversal, Litecoin will probably follow suit.

This has increased the interest for Polkadot, which surged to $55 early in November. But, as we mentioned, the negative sentiment in the crypto market has had a major impact on DOT/USD, which fell to $23. In the last two days we have witnessed an attempt to turn bullish, but it seems pretty weak, and the 2o0 daily SMA (purple) is providing resistance at the top, so buyers have to push above this moving average for the bullish trend to resume again.